Despite much fear of a Detroit bankruptcy, last night the city seemed pretty quiet. I suppose there’s not much more in the way of hardship that can be imposed on this place; it’s pretty much at rock bottom.

This failure is a stinging rebook to a philosophy that still very much haunts our country, not unlike the Nain Rouge haunts Detroit and brings suffering on its residents.

My portfolio is rather quiet today, with exception being made for BAS, which is now up more than 2% on the day. Everything else I have is lower or flat.

I would urge caution, as I have for the better part of three months. A correction is taking longer to form than I suspected, but that does not mean a correction will not form. We are going into a very tumultuous year, from the stand point of prospective growth and complex changes.

It’s better to be guarded and maybe have sub-optimal returns (by have a large cash position to the long side), than arrogant with losses.

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